The New York Herald Newspaper, January 13, 1869, Page 8

8 TRADE WITH CANADA. Beport of Israd 7, Hateh in Relation to the Reciprocity Treaty and the Chan- « _ bels of Commerce. Increased Revenues Received by the United States Since the Abro- gation of the Treaty. "The Aggressive Policy of Canada. Proposed Improvement of the Erie Canal. Hon. Huen McCv1.0cn, Secretary of the Treasary:— Sin—The resolution of imquiry passed by the House of Representatives July 6, 1866, and received by me called for:—~ First—A statement of the trade and commerce of the United States with the British North American provinces, and the revenue derived therefrom, since the termination of the Reciprocity treaty, and ail changes in Canadian tarifts since that date. Secondiy—A statement of the comparative impor- tance of American and Canadian channels of com- merce or transportation of property from the West to the seaboard. On the ¢th May, 1867, my report in answer to these inquiries was submitted to the House of Representa- tuves, At that time it was impossible to reach con- clusions on several important points with a satisfac- Sory degree of certainty. Scarcely had one fiscal year of the United States then passed since the treaty had ceased, A large amount of the articles on hand and free under the treaty was hurried forward from the provinces, as the time for its ‘termination approached, to avoid the duties levied afterwards, A corresponding Qjminution in the importations immediately subsequent naturally ensued. Hence a comparison of the trade during the last year of the treaty and that next afterwards woula have yielded Ho conclasive inferences. With the termination of ine treaty our commercial intercourse with the provinces is again open for investigation and legis- jation or diplomatic action. Renewed attention has ‘been drawn to lt by the efforts of the Canadian au- thorities to remove the dissatisfaction of their people and promote the prosperity and consolidation of the New Dominion by restoring the course of trade un- der the treaty, thus giving its natural commercial connections and market to each province, Tnow beg leave to submit a farther report em- bodying More recent information, tne resuit of the examination of two fiscal years, in answer to the resolution of inquiry by the House of Representa- tives and in pursuance of your instructions to me, dated March 27, 1568. FRADE BETWEEN THE UNITED STATES AND CANADA BEFORE THE TREATY. The principle of freedom in our commercial ex- changes with the North American British provinces has at al] times received the approbation of the lead- ing staicsmen of this nation, without distinction of party. Jt has become universally popular, and ts decidedly in. harmony with the national progress and enlarged spirit-of the age. The territory of the provinces is extended on a boundary indented with our own across the Continent. Climate, soil and the cost of labor—the main elements of value in cereal Productions—are nearly alike in both countries, ‘These similitudes, no dowbt, suggested the idea of reciprocal trade and commérce; the legisiation and diplomacy of the two countries finally gave it a prac- tical though partial application in the adoption of the so-calied Keciprocity treaty. The principle of the treaty itself was to permit the interchange of products of each country free of duty. It waa a formal movement i favor of virtual if not literal reciprocity—presenting to the world the example of two contiguous nations abandoning suspicion of in- jury from each other and practising in their inter- course the best principies 4d in modern civilization, The omissions in the treaty aud its united character led to its termination. A brief statement of our commerce with the British provinces and the revenue derived from it before tbe adoption of the treaty and durt. its decade is ne- eessary to complete a proper history of the suc- cessive changes produced in our commerciai reia- tyon by iis adoption and termination. KYPRCTS OF THE TREATY ON THE KEVENUR OF THE UNITED STATES. ‘The treaty led to a large dimunition of our revenue upon the Northern frontier. In 1854, the last year unaffected by the treaty, the revenue upon articles fuciuded in the free list during subsequent years, nd imported from the provinces of Canada alone amounted to more than $1,243,493, and from all the British provinces, now tacluded in the Dominion, Was $1,524,457. Al ing this as @ basis of calcula on in the ‘ordinary mode of computing an increase of revenue for the five succeeding Picg st the reve- id have bem $9,257,586 in the aggregate, or annually. On furthe? examination it be found that the revenues wonid increased im the same ratio during the OMcial Cana- diay reports show that in 1859 the amount of duties have remaining years of the treaty. collected by Canada on imports, the products of American ‘industry, from the United States Was $1,825,195; in 1890, 9,928, and in 1561, $1,584,802. During these three years the whole value of property imported into this country from Canada upon which duty was levied was only in i459, $434,552; Iu 1800, $358,240, and in 1861, $227,852. An exars son of subsequent years yields similar re- euils. average awoant of duty aunually Jevied d on Canadian imports in t exceed $76,000 towar eee three ently expenses of collection and guar @ frontier of iniand coast 6,000 mies in On a, closer examinatiyn ft would be fou: @ large proportion of the duty-paying arucies in- ported irom Canada consisted of commodities not Produced in that country. j. | ise) tana | pontoon) acts, 3504, 969 imported inte 1 United Sates... Iron, hardware and enit! an produced be $640,05 sce | 0,90) 21,011} 190.506! s19,586 ‘and other goods \ ged_with duties in United Biates,..........| 126,880), 160,086) ial 185,414 The preceding statemen? dentpnatrates that during these years we had not collected annually duties ou much more than $100,000 in vane of merchandise actu produced ip Canada, yielding, on an average of twenty por cent, about $25.00 annually. The following 1 # comparative statement of the produc- tions of each country imported imo tee other and vharged with Cove? in it, showing that of the pro- dacuons of American labor Canada taxed forty-five times a4 grea’ an amount in value as we taxed of her prodncuoue— . = = (87,081,264) 86,206,390) 94,694,508 14088] 119,388 paying duty in Products of On: uty in Untied Slaten American producte aii with daty in Caneda above) H Canadion p # charged! i swith daiy fo United Bates.) $704,914) 86,048,224 | 94,405,145 ‘The records of subsequent years confirm the same conclusion; bat it ts wot desirable to present a re- aondancy of statistics, which am only usefai in po- litical economy to supply exanrpies and illustrations Of general principles. ‘They can Rever be the basis of principles which are grounded tn the nature of things. ‘fhe relation of cause to effect is the only wale teacher of those measures wifich are beat to adopt Jn every possibie case. ‘ The United States and Canada threyghout the ex- tetence of the treaty presented the anpimalous spec- facie of two border na¥ons with ray of custom Houses extending along their whole cunterminows frontier, sustained in our country at an expense Breatly exceeding the yevenues collected through them, while on the opposite sbore was found equally catended cordon of imperial custotos bail ang, Collectiag large revenues trom taxing Ameri- can commodities. This result Wes prodaced by suc- censive tari in Canada imficting higher duties (in fome Cases aimost prontbitory) upon the chief tmpor- tations of the products American labor, Of at all the articles named free by the frety a aurp both countries; but Canada then, as now, mo market® #0 profiiable as those of United Stores, and no outlet for her surplus at Worthy of mention, exceptthis country, when her €: ‘then Bs now, contributed to tue revenue. Her lo- inion reversed the ordinary course of trade—that @ agtion bays where it sells. Her people sold to ue «d were prevented by her tariffs from buying of ua. fT hot lett to auada, had 6 mottves and objects of her taritrs are eonject Mr. Galt, Financial Minister of 0; reports March 1, 1800, page thirty-six, us followa:— By extonding the ad valorem princtple to ali j portattone ead thereby neo traging and Gevelopi ibe “atewel trade be- tween Cant in am foreign countries: pA fea, and eo far Deoesting the shipping Interests of Great Briiain—ag object Whied Is party attained through the duties Leng taken the vaine in the market where last bougbL tho inv y of : a wrseveral youre had completely divesved tie « Caner Wo lean, Cpr key VO He Americer woke cote NEW YORK HERALD, WEDNESDAY, JANUARY 13, 1869.-TRIPLE, SHEET. TIONS, Tuow submit s statemens of the Merce of the United States British it se siti ig Bs aad i Ej EXPORTS—ONTARIO AND QUEBEC. Summary statement of value of exports (articles of Canadian Produce) daring fiscal year ending June 90, 1847. Great | B. North “America. Total vate of exports. ...| 814,963,614 | United Exports. States, |Countries.| Value. Produce of the mines. $238,827 eel, Do. fish Tieter| azacis| “rata Do. + — fores ggsuza) Tpiee) 12, o48 Animala and their products.) 3683191) 14,184) 6,118,689 Agricultural products. 1,185,237] 25,470] 16,765,981 Manufactures. “asgreol| — 46,402[ "895,767 in and bull 2,404,304 —| 2,8 Other articles. "347,939 437] 416,191 Ships built at Quebec. —| 186,836} 1,005, Goods not the produce of| Canada... $90,832} 80,195] 1,678,083 ‘Total value of exports. 35,588,800 [$990,908 | 845,070,219 IMPORTS—ONTAR(O AND QUEBEC. Summary statement of, the value of imports, duty eoilected, akc., during the Sscal year ending June 30, 1887. From British Colonice, dh Great | North West fea Britain. | America.| Indies Dutiable Et & Free goods... Coin and bulifon! Foreign, reprints ‘copyright works. Total. Imports. Drantie $86,060.015 $2,945,975) i, 799,744 copyright works. 4,005} =| 4,005 Total. 820,212,007 | 85 25,306 850,048,967 Amount of duty.. 7,001,660 ‘The main features of the trade of Canada with the United States and Great Britain through a series of years are correctly expressed in the above Canadian tables, which are not always accurate in details. The changes they exhibit from year to year will be found to exist in the fluctuations in trade produced by the laws of supply and demand. An examination of the above Canadian returns shows that the commerce between the two countries has not been materially disturbed by the termina- tion of the reciprocity treaty, although the United States have received @ addiuon to their reve- nue from the duties paid into our Treasury on Cana- dian productions, It discloses the additional fact that the Canadians now, a4 in times past, sell to us and buy of Great Britain. The contrast between $75,000, the amount of revenue annually received by the United States from Can: imports during the operation of the treaty, and the large amount received since its termination will occur to every one. It will aiso be remembered that the duties ex- hibited in the revenue tables already given are in gold. Computed im our currency they exceed $7,000,000 annually. It is @ significant and im- portant consideration that during the whole exist- ence of the treaty—a period of ten years—the United States collected only $750,000, while in the two fiscal years elapsed since its-termination, mstead of $750,000, we have collected about $14,000,000 in our currency. W our revenue has thus in- there has been no loas of trade. In a previous port it was shown that fors oes proportion of her productions Canada ts placed the position of & farmer who has only one customer. Hence the value of our markets has always been highly appreciated by the Canadians, Their Parlia- ment has not hesitated to call attention to the great difference in price of the same articles in the two countries, and the practical test of the whoie qnes- tion is shown by the very large importations made from Canada into this country, even now, when high duties are paid on them. Nine-tenths of the Canadian exports to the United States consist of products of the forest, animals and their productions and the produce of the farm. They do not sensibly adect our markets, and are less in-value than those of any agricultural State in the West. They have no more perceptibie effect ou our markets than the waters of a stream col- lected from agmal! surface have upon one of onr inland seas, In fact the daily prices current at Mon- treai and ‘foronto—each the commercial metropolls of its province aud the jadex to the prices through- out the whol inlou—ere governed entirely by the market pr nthe United States, exchange, duty, freight aud expenses being added. This is shown by the daily commercial reports throughout Canada, The view thus taken Js confirmed by the collectors of customs at all the leading porte on tho Northern frontier. ‘The comparative magnitude of the four and grain trade of New York and Montreal, each the comumer- cial centre of Its own country, 18 shown by vue fol- owing tables compiled by Elmore H. Waiker, a gen- emau who has rendered great services to the pub- lie by diitusing much valuable statistical informa- tion as to our inland commerce:— TABLES SHOWING THE RECEIPTS AND EXPORTS oF FICK AND GRAIN AT NEW YORE AND MONTREAL FOK SLEVEN MONTHS OF THE LAST FOUR YEARS. 1966, 245,979 Flour, bbis. ...... Wheat, bushels... .12, Cora. RRCAPITULATION, Heo. ~ Four, Crain 15% 223,068, ane 795 following Will shaw the receipts of flour and rail, river and canal, from 1, 1868, and exports for the the corresponding The grain at Montreal b; January i to Decem| seme period, compared with period in 166T:— i iT 7 tenes Ba78 Potal bushels... 4211,623 5,024,600 8,816,801 4,917,679 ‘The essential and unchangeable characteristics of this trade wre beyond the infuences of temporary jegisiation on either side, and must be governed by those leading facts as to the geography, climate and configuration of the Continent which were more particularly set forth in a previous report already fubuiltied to Congress, The views then expressed have since been condirmed by the efforts of the Ca- ans tO bi ate treaties of commerce in a thward direction, with Cuba, the West Indies, xico, Brazil, a8 well as other countries in South ‘America, and to extend their trade with India and China, The distance to Guba from Montreal by way of the St. Lawrence is at icost three times as great as through the United states. THR RIVAL CABRYING SYSTRMA, ‘To understand the induewce of out respective geo- hical Jona Upon the commercial intercourse between the United States and the Dominion of Canada st should be Shows Vial Port Ogiborne, on Lake Erie, in the Province now called Ontano, 4s the ent to the Welland Canal and thenco through Lak tario to the St. Lawrence canals, Batalo, in the United States and opposite Port Col- borne, is the entrance to the Erie Canal, leading through our own territory and via che sMudson river cisely the samme st te these portant pots same status to na} 0 dy" reganted ast creat rial tes for te as the rival routes for trade of fae jorthwest. The proposed Ni Ship ¢ ison the American e850 Dare) to the We Canal, and if made and ef any commercial ‘The American link in the St. Law- ‘anada. folio’ During the six months when the St. Lawrence route is open it is seldom safe, ow! to strong cur- masses of ice and almost low poms. the latter being caused by the meeting of the pical waters with those brought down from the These ical facts must deter- systems for the of North Amer! Adverse legislation by our foreign neighbors may for a time deflect portions of our inland and foreign commerce from the natural Bhennele: of Anarene 000. cqrees. 50. Bat fron our Atlantic cities, oniy to react to the loss of those who have the temerity to try the experiment. COMPARATIVE VALUE OF TH” ENGLISH AND HOMB MARKET FOR GRAIN, &C. ‘We have seen by the tables already presented that only a small proportion of the grain carried to New York is expo: abroad. Of these exports a large share is sent to the West Indies and other southern countries, As the route through our Atlantic ports to the great grain consuming and manufacturing regions of our Eastern States, as well as Lo the foreign and domestic markets south of New York and supplied with grain and four from the United States, ia much shorter through our own country than via the St. Law- rence, the value of the Englisn grain market is worthy of investigation, although even for this route the United States has superior advantages. ‘The Importance of England as a mart for grain produced on this Continent is greatly overrated. In 1848 the Corn laws were repeaied. Our farmers con- expected that a large market would be opened for their grain. But the importations into Great Britain during the twelve years 81 biog tree to the repea! were five times a8 large as those from the United States, Within that period our Lome market had increased so much that our exports of bread- stuffs to England had decreased at least twenty- seven and a half per cent in proportion to our popu- lation. Milwaukee and Chicago alone often send o1f in ten days more grain and flour, than Engiand takes from us in a year, reckoning the average of the last twenty years, These statements are not based on the data of isolated seasons. ‘The position of the wheat producing portions of the Brifisu possessicns on this Continent makes New York, for them as well -as for the United States, the great northern cont- nental depot for shipping, whence low freights, arising from brisk competition, are found, to which return cargoes can be had, and whence throughout the whole year the merchant can transmit produce either to old England, New England or Southern markets, thus presenting to the Western farmer and shipper-great advantages over Montreal. THE AGGEESSIVB POLICY OF CANADA. Canada has during the last quarter of a century expended $38,235,413 in the construction of unprofit- able railways and canals, with no local trafic, popu- lation or commercial wants commensurate with such stupendous undertakings, but relying upon tlie dt- versions of our inland commerce to sustain them. ‘The motives of her policy are almost as well known as the works she" has constructed. The Hon. AeT. Galt, the Canadian Mimster of Finance, in alate speech on behalf of the government, said:—“We have no trade ourselves which requires enlargement of the canals; no trade which would justify us in ep- Jarging them, We could oniy be repaid for such im- provements by obtaining the American States’ trade and making it pay tolls or otherwise contribute to our revenue.” How far our government will be willing to surren- Ger ita trade and revenues as a tribute to this policy of a gigantic British Canadian: rivairy will depen upon the character of the statesmanship that shail govern our country. CANADIAN TARIFFS—THIR INFLUENCE ON UNITED STATES RAILROADS AND SHIPPING. Canada, with a view to exportation and the de- mands of the maritime provinces, now admits wheat and flour free of duty. She has no crop 80 cheap and proiitable for various manufacturing and other purposes as corn bought from us. It is a domestic necessity with her to purchase it, a§ she cannot pro- duce it’ so cheaply as sne can buy it; and any duty levied by her upon wheat and corn, our two stupie articles of culture. must be paid by her peopie. Owing to the geological formation and the position of the most populous and rapidly increasing portion of Canada, slie will always be compeiled to carry her coal from distant mines, chiegy from the United States, her own consumers paying whatever duties be im) on it, Acharacteristic feature of the Canadian tarttts is that, although the usual rate of duty ievied on tex- tile \fabrics and other manufactures 1 fifteen per cent, the materials used in manufacturing are care- fully exempted from taxation. Mi articies already in part manufactured are also included in the exemptions for this purpose. This course 1s carried to the fullest extent in reference to shipbuilding, all articles used either in building or furnishing a shtp Deing imported free of all duty. A similar policy exists ag to railroad tron in all its forms; to locomo- tives and engine frames, and to everything used in making railways. To so great an extent are the facilities for ship- pone Pope out that such a vessel as would cost about $100 a ton in the seaporis of the United States can be made for little more thag half tbat sum in the ports of the provinces, estimating in the cur- rency of the United States. The tnfuence of this eat advantage in favor of | prvnineane shipping and oreign industry over those of our own country, both in competition for inland commerce on the lakes and rivers, and for trade carried on between the two countries on the coast and with all regions beyond the sca, deserves grave attention; and the concessions made in the same way to provincta) lines of railroads also compere with our own are scarcely less worthy of consideration. ‘The coasting trade of the British provinces has never been conceded to the vessels of the United Staies. Forvign ships might go from one colony to another, bat even tis limited privilege is now taken away by the confederation of the British North American provinces. The Imperlat act (19 gud 17 Victoria, chapter 107, section 163) 18 as follows:— No goods or passengers shal! be carried from one of the Biikion Pomemna ja Asia, Africa or America Meany other part of the tame possessions crcept in Briviah abips, Some years ago, in my report to Congress refer- ring to successive and successful leximiative efforts of Canada to divert and control our commerce, the origin of this evil aud injury tv our jadustrial tu terests were pointed out as follows:— In the profits eecratng from freight, between the two coun- tries, the advantage since the ‘trey been in of British shipping, the value of exports aud fnports by the vessels of rach qountry being as the test. In the five years ending Jane the value of comestic egporte to Usonda in alt bottoms wae 12,605,616, and In American bottoms # the preponderance in our Cavcr betag mbout on ie in the five years since the treaty, aad beginning wiser 1534, there was an excers against us of nearly ome-ball, the Yalne being $2,300,700 in American veesela, against GA20.602 In vemcls of Britiah pationailty. Ko marked t0- equality exists in “oe nited States of, bot ite slue' carried "ty tet ety being BE8,005 ia” ‘Amer sng v i ae ease fof vessels. In thi euttion. wireless RH K van yace in teers. The aE ; stapie manufacture of C bas long been that of ship. 7 . and’ abundant of Inbor for this purpose ts obtained “at winter suspension of nat n, the value. O¢ ships dustry Is encouraged by almiting all the (he Construction, rigging, or equipment of abipa either at » nominai race of duty or entirely free, or sub- Jeet to a return of duty to the (shipbuilder word satisfaetory proof is given that they have been used for this purpose. ‘The evil here exhibited bas now grown into vast proportions, and is aggravated by tue burdens of our own legiviation, Jt ‘as disastrous to our sips of Great Britain lage Were toour merchant marine dur- ing the late reveilion, Heretofore the shipowners of England and ocher commercial nations ought our Vessels, which Were seen On every sea and salied un- der the flag of every nation, ‘The pracdeal conse- quences of our iegisiation are well stated ia the fol- Jowing ADDRESS OF THE HEIPSUTLDRRS AND SHIPoWw NER AGO OUATION OF MAINA. ‘The proposition has been seriously entertained in high and Intiuentia: places to repeal our navigation laws and adroit ail foreign Dalit ships to Ameriean regint sudletent inducement to Lestir ourselves, atd at ouce lay be- fore Congress the reasous why that ehould not be dune? Should we not thow them that this will be a creat disaster, and more ruinous to one of ite raembers than the hurricanes and earthquakes whieb have o: inteso severely Autioted other regions. The Philiatiges, with = view to the Jews in perfect subjection w them, wok away thelr fond, go thal “there was no amith foued tbroughomt all the Jand of Israel.” And ware they not wise? W fect device could be employed to keep a poopie, fa gunyection thas to take from thet taelr skil(ul workmen? And isnot thie just what thie proposttio won be drawn away to the new i in ‘to cee, all ni ‘kill wunploged to add to the wenth Rnd. arrogant at haa {nicted upou us sued ¢ infary. merienn uation wiles \Wagarantie thes Porte te the ' Tudo of iteif, and 10 world the au tacie of reiging on other nations for its ‘ips whet pos sentes more alinuaot means for their cou elion thao aay other nation whatever, and migit but for its own unwine lsiation be tie great sources of supply to ali nations? Wi this polley curried gut the immediate effect would be the ontinued eflence of our 8! ne tri rights to foreign countries ve What is truo of Maine can he well said by the peo- ple of overy frontier State upon our «ix thousand mifles of river and lake coast, especialty jf Congress should repeat ‘our navigation lawe and eG foreun veaséis to American reg: .” Ourlake marine and our railways now have to compete with Brita Canadian carrying systems constructed at half the cost of their American rivals. Admit Canadian vessels fo registry and the asserted ownership will be nomifal, ‘Their admission will ve equivalent wo @ repeal Of the navigation laws, permitting i vessels to coast or carry goods from one port in United Statew to another, o# Canadian raiways are allowed to transport from one inland port in the United States to another, uuder # very liberal au thority. i¢ wonwl then be said every woere on our joland shores, ad /t is nywW raid in Maine, that “our shipyards are idle, and Loot has grown where formerly was the busiest of our workmen.” Already, estimated by tonnage, the American vessels employed on the ocean have been red more than one haif between the years 1861 and 1867. Few, perhaps, adequately appreciate the our inland abip! . ae of the en times as great 5 Vessels, and about three 90 gross aa the foreign tae of the United States pony Joreign vessels. He also rue. “ ending June 30, 1868, only acre per cent of the If the coasting should be thrown open to fast rama object of norable pride to our navi- gators, would soon be driven from our ro! ugh the means which have already reduced our ocean vessels one-! Only by ting the principle of ig from duty or allowing @ drawback upon ail les in the construction of ships can our former naval prosperity be restored. Tne same principles should extended to all our means of inland transit. be By exports products would and our enabled better to compete in foreign markets, thus = turning the actual balance of i t Bes Cae ai nee pre: mi contriv. inated in a sion ‘of the n m conceded to the trade and com- in the immense public works of Canada; nor could those rival carrying systems to-day find any impor- tant support, except upon the basis of our bonded system, the Warehousing actof 1854, and the most pera construction of the act fino permit- tung the wansit of foreign and domes frre first through our territory, then through Canada and afterwards to their ultimate destination in this country. The privilege was accorded to Ca- nadian railways to carry fo) or American mer- chandise from one part of the United States to anotuer, while te had at od ted ah b algectneas the carriage of same pro) ry fot from one port to another in the United States. It should be remembered that the same facilities en- eke by the Canadians over our oltizens in ship- uiiding aiso enure quite as fully to their advantage in the construction, operation and rej of rail- roads, and that competition between lines on the different sides of the national boundary is not merely @ question of distance, about which no just doubt can dd, but also of cheap construction. To aid in-this direction the Canadian has hot only labor comparatively nntaxed, but also a plentiful supply of untaxed timber and untaxed iron in all requisite forms. Farther investigation of this branch of the subject 4s now omitted, a3 the instructions from you, dated March 27, 1868, directing me to inquire into the work- ings of the regulations of the Treasury Department, 60 far as they relate to the northern frontier, are more fully considered in a supplementary document, showing the superior advantages thus enjoyed by the Canadian railways in competition with our own. ESTIMATE OF THE ST. LAWRENCE. As an explanation of the partial character of the treaty in not providing for a really reciprocal ex- change of the products of labor it 3s often urged that the admission to the St. Law: and its canals compensated for the deficiency. If, with the adyan- conferred Uj our territory by nature, we cannot on a ft of just equality maintain the superiority of our transit system we ought to suc- cumb. an im; jal examination discioses the fact that while the navigation of Lake pechicey, granted to the Canadians by the treaty, has been o! much benetit to their shipping, which ‘by its cheap- ness drives our own heavily taxed vessels out of the field, those have veen greatly mistaken who imagined the st. Lawrence would prove a great highway from. the Wesi to the ocecn. COMPARISON WITH THE AMERICAN ROUT, As the navigation of the St. Lawrence was one of the supposed equivalents granted to us by the treaty its real value becomes an important subject of inves- tigation. Beyond thia it cannot be alleged that Can- ada has any equivalent to give us for the advan- tages of our markets. Hence a comparison between that route and the connecting lines between the lakes and the ocean through our own country is an — portion of the answer to the inquiries sub- ted, ‘ NATIONAL CANAL POLICY OF NEW YORK. Nor can consideration of the terms on which the use of the great American canal is enjoyed public be properly omitted, as that work is the chief competitor with the Canadian lines and we depend upon it for the maintenance of commercial ‘supremacy in competition with Canada, No other work of a magnitude is knowa tous except the canal of by which two centuries ago Louis XIV. known in history as the “Grand Monarq' the most magnificent sovereign whoever occupied &@ throne, connected the Mediterranean sea with the Atlantic The policy meres by the enlightened statesmen who projected these it works was alike. That of tie State of New ‘ork was so far to improve the hical advan- of our position as to pas# through our territory the then undeveloped commerce of the West, and gradually to improve these facilities to such a degree a3 would be necessary to meet the requirements of ite growth, [The distii hed commercial repre- sentative from the city of New York, in his speech at the International Convention, at Portland, said:— “The inland commerce of a country is vastly more important than us foreign commerce. The very element of prosperity in foreign commerce ts domes- tit commerce. The commerce which sails upon your lakes Ontario, Ene, Superior and M| and which floats upon your canals is in value four times that of the commerce which is borhe in ships from the seaports of this try to the Old World.) “Statesmen did not at first foresee the future lin- portance of their work, as the means of international communication across the Continent, but mt rec ognized the wisdom of Louis XIV., through Colbert, his profonnd and sagacious financial Minister, in re- Jation to the tolls on public canals or national high- ways. ‘This formed a nobie precedent for the policy adopted by those wise and venerated benefactors to that State and the nation as to our chief Lage fares. The French monarch placed the tolls on his great work at so low @ rate 4 to be only an ade- quate compensation to Pequé, the engineer, for keep- ing it in good navigable condition. ‘This policy was adupted not so much with a desire for the welfare of the French le as from the more selfish, but en- lightened, motive of raising the greatest amount of revenue, The King was justified by the resuits and found tat, if considered solely a8 a question of financial policy for his exchequer, it was better to tax wealth only whea it had ac- cumulated, and not to arrest indestry in the work of production or im the cheap and proiitabie exchange of commodities. In every just.apportion- ment of taxation the increase of taxable weaith de- creases the burden upon the individual and the masses. All eminent writers on political economy contirm the belief that whether the treedom of in- ternat commerce and tadustry be interrupted by tn- le mountains and swamps or by oppreasive tolls or restrictions the effect 1s equaliy pernicious, When sue entered the Union the State of New York relinquished that part of her revenue which ‘Was derived from taxes on ioreign Commerce, in the same spirit of true anion the national character of the canal was fully recognized from the beginning, ‘and the State, declining to tax inland commerce, never used the tolls levied upon transit except to repay the cost of making the canals and of tmain- taming thein, thas granting facilities to the trapsit of Western productions at a time when she pox- sessed a monopoly of the inland trade, and prac- tically recognizing the right of free way through lier territory a a right of nature which cvuld not justiy be withheld from the States of the interior. The leaders of public opinion in that State, without dis- tincdon of political y, HOW adhere to the view thus early adopted. They seek by tae development of mutual and inaterial interests to strenginen the bond of union between the states. Auch Of the value attributed to the na’ mn of the St. Lawrence has arisen from the juonary estimates placed upon it when no other line of eom- munication by waier connected the great Jakes with the ocean. The Hudson jetrated far toward the inland seas, and thus ai te site of tue com- IMerciat jis of the Union. But beyond the navigable portion of that river transit was dificult and its cosia 80 great as to be pronibitory. in this condition of affairs the minds of the early settlers in the then “far West" turned to the exit aiforded by the magnificent river fed from the oe lakes, if at that time the banks of the lower St. Law- rence had been occupied by people animated by the @nterprise and t of vommercial life, and if the State of New York nad not chen numbered among her citizens men of & comprehensive sagacity never fa pear | ‘and combined with statesmanlike intre- be ity and perseverance no less remarkable, the St. wrence might have become the great thoroughfare from the Western States to the Old World, our national trade would for a time have been defected northwards, far beyond the boun- daries of the New Kngland States, Montreal would Dave taken precedence of New York, the whole com- mercial condition of the Continent might have been temporary and the wade and manufac tures and shipping of Great Britain would have been fostered and to the same extent as the progress of our own would have been tmpeded. At te Ls rd when Lg needed men woi hy of the occasion opporta' arose among us, ‘They ap- preciated the momentous. Importance of having the commergial meti jis of the Continent within our own domain and t jcance of the great vailey through the intetior the State; understood the phical nature of the Continent, and the finger oOo did not point in vain at the only portal ia the Al Mountains through Which the wavers of the hi and their commerce are bow practically conducted to the mivnth of the Hadeon, with im- ingest to the nation in every departunent of its Mine indertaking thas initiated had Ao much m. fuence upon our comin relations with Canada To the past, has now must have in the fature if a wise and liberal ig adopied'by the general ernment, that historical reference to -the Srews of tts founders and the principies in which their ra have been governed faithfully indi- cates what that policy should be. ip 1408, When discussions as to the Brie canal first ausumed the form of definite action in the Legisia- ture of the State of New York, ali) minor and selfish Interests were ot saga ny pd as subordinate to che national welfare. The Legislature tweif, vol. wntarily renouneing the Advantaces 0 geographical Porition excepy in participation witu che other Mpies of the Ubon, coutdendly ex pected wld jroua the nation at large, and dan act “causing an accurate made t ut of that aR a were, by means of a canal naTge nm, between the Tken“and the Hudson to ‘ “encourage iver Suu. aac mer seat bs @ full and genera! inter between preamble ry the James Madison the commissioners thus delega' Lai and presented the appli- cation to Pi lent made thelr pro- ot of a special message, dated De- ton, Morris. and Fult drew a bill, inemteat: ap} porciatien $8,000,000 for the m0} Work and em! words:—"On hall ve levied upon the Hope! oats “prerte mn a uj ong) the said canal ase as needyul of the ag nec Ch favorably roelyas. Se in, o Treasury, in ans’ a letter from this committee asking his opinion as to the policy of the undertaking, urged ir favorable action upon considerations of the wisest statesmanship and purest patriotism; but as expectation, verified by sub- peqnens events, was held that a rupture with Great Britain was impending, Congrats finally declined to make the appropriation at that-time, on the ground that “the resources of the country might be required to support a war.” The commissioners marked their sense of the refusal to grant aid to a national object, no less portant in war than in peace, by saying, in the conclusion’ of their report to the ture:—“These men console themselves with a hope that the envied State of New York will continue a suppliant for the favor and 4 dependant upon the generosity of the Union, instead of making a manly and dignified appeal to her own power. It remains tobe proved whether they Judge justly who judge so meanly of our counsels. | ‘‘ Congress having told the New York statesmen to wait” until the war was over, they replied that they would not wait—‘ that delays were always the re! of weak minds.” In the current lang of those days, they called the work, ‘The Gi Erie Canal,” Sparen ieee sublimity of the veneficent change it would produce in opening out for immigration and the use of man- kind an area of fertile land greater in extent than the narrow edge of the Continent occnpied by the pore | nations of the Old Worid, more clearly, in the conil- dence of their well-founded hopes, than we do now, who look at their realization as a fact accomplish long ago. After the postponement of aid by Con- gress applications were made to the Legislatures of different States, Several of them returneu favorable answers ; but, the war with Great Britain having be- gun, little tare ‘was made. On the 10th of November, 1819, DeWitt Olinton, as president of a board of commissioners appointed the previous year, reaewed the application to the ‘overnment of the United St and en behalf of ie State he represented n’bore significant testi- mony to the iohy purity of her motives in seekti her own interest only, by, promoting the national welfare. He said:— e State of New York is not unaware of her interests or disinclined to prosecute them; but when those of the general government are concerned and seem to be paramount she deems it her duty to ask for their assistance.” Finding that all her efforts to secure aid from other States or the general government were unavailing the State ew York alone, and with the slender resources of those days, resolved to commence the gigantic undertaking. Even then she persevered in rejecting Considerations merely selfish. Her commissioners judiated the idea of levying a transit duty for the vantage of the State, and said this would ba “the better course if the State stood alone; but, fortunately for the peace of the Union, this is not the case. We are connected by & bond which, if the prayers of good men are favorably heard, will be indissoluble.” The act Imaugurating the construction of navigable com- Mmanications between the great Western and North- ern lakes and the Atlantic Ucean was passed by the Btate. April 15, 1807, and was based upon fn important memortal presented to the Legislature by the leading merchants and men of iniuence in the city of New York. It stated that:— and manufactures, mitigate the hance the blessings of peace, consol. vance the prosperity and elevate the character of the United Staten, it is the incumbent dnty of the people of this State to avail ‘of the means which the Almighty has placed in their hands for the promotion of such signal, extensive and Jasting benents to the human race. Lge ner omy taken upon herself whatever there might have been of risk im making at her unaided cost @ channel of cheap com- munication by water between the citizens of the Eastern and Western States, and be- tween those of the West and the great high- way of the world, the State of New York from patriotic motives tb-day continues to be the Tegulator of the cost of transit between the ast and West, protecting no small proportion of the people of the Union against those extortionate charges which might have been levied if the canal, with its natural moropoly of position, had falien into the hands of speculating individ or compa- nies. It is computed that during the six months of navigation the canal alone carries as large a ton- nage of freight as the five chief trunk railroads from ‘West to East during the whule year at half the cost to the public, being a saving of $11,000,000 annually to the people of tae United states. RIGHT OF WAY—THB KIGHT OF THE MILLION. There is no withdrawal from the original doctrine of the State that the cana! shouid be considered a3 a trust from which the State should receive back stin- ply what it advanced for constraction and mainte- Rance, and employ ihe surplus for the improvement of the work and cheapening the service it renders to the public. Such were the views held at the Constl- tational Convention of the State in 1867, when tue fencipes, enunciated in 1846 by its master spirit, ichael Hoffman, were quoted, reiterated and ap- proved by the leading men on ali sides, He said:— The right of way 1s the right of the milion. The sovereign holda it in trust, and can exercise ft only for their bene.t, and has no right fo make « revenue out of it, Such a coursd must cagnter the worst oppression and the worst corrup- tions, and soon realize the worst vices of tac worst govern- ments—-taxation on all we consume, which will allow nothing to go to of from the markets without tribute to the The same doctrine was expressed at the Con- #titutional Convention in 1867 by Hvarts, Tliden, Church, Cavely, Opdyke, Dwight (Professor of In- ternational Law fo Columbia College), Brooks, Mur- phy, Cassidy, Clark of lochester, and others, wno repudiated the idea of taxing tolls upon canals for any other purpose than to pay (or the cost of oun- struction and repairs. NATIONAL CUARACTRR OF THE CANAL. ‘The truly national character of the work and of its value is shown by the fact that the commerce paased over it and Loar ire } to the people of its own State is only oOne-ninth of the aggregate, the re- mainder coining from the Western and Central States or Canada. The State of New York does not furnish as large an ainount of tonnage for the canal as is suppiled by either Michigan, Illinois or Wiscon- sin, singly. No jess conclusive is the testimony of half @ century as tolls un ‘ocal success, present value, and the certainty of ontinued increase of 118 trade, The magnitude of the present aunual productions of the States bordering on tue lakes is not entirely un- known to she public; but few know how fertile is the soil and genla! the climate of the vast areas to the northwest ‘¢ Superior, soon to become settled and increase that yet undeveloped commerce of the lakes Which Will pass through gur own territory, en- rich onr merchanis, employ our own people ‘and ald in diminishing our national burdens, if we are true to on hens Just inte: a and Lyin stewards of the public trust commitced to our charge. Already the average ann income of the canal, after deducting aii e: t# $4,000,090, carefuliy applied to the extinction of the debt incurred by the construction, At tie present rate of income, not jaar cao its prospective 1 the ae boy be. Whoily discharged in eight years. bjec ex. isting lien on it the canal doula now be readily sola for av least $50,000,000, It has been seen that, in the rivalry between the carrying systems of the St. Lawrence river and the Brie caval or Hudson fiver, the route through our own county ix ncomparably the moat successiul competitor, affording even to ® large proportion of the Cana:lians themselves the best meaus of commu. nicating with Atiagtic ports and the world at largo. Yet vis eaid that with certain enlargements of her canals the St, Lawrence would boar away the palm of victory; and British Canadian capitalists are urged to invest in the doubtful experiinent. A sum small iv comparison with the cost of the Erie canal, expended in judicious Lmprovements upon it go aa to permit the Of boats of @ grouter sizc, would redace by ,one-haif, or iity per cent, the | ogo cost of transportation on it. A similar say- ing has been actaaily effected by similar meaus ‘already applied, and competent engineers and statis- ticlans vear testimony to Lhe repetition of equal re- suits from further lmprovements, PROPOSED IMPROVEMENT OF THE CANAL AND ITS NATIONAL BRBULTS. Under the jiberal system hitherto adopted by the State of New York this reduction in the cost of freight ‘would ture to the benetit of the Western farmer by Practically dimimishing distance between him and tue consumers in the cities and manufacturing dis tricts ja the aud our customers throughout the world. ‘The te, after nll her ex} tures, is yet only the friendly channel or jam between tiie Producer and consumer, and is tnverested for her own citizens only #0 far ne they constitute @ part of the whole Ne of the Union, ing 18 Feport the attention of Congreas was Cailed towards securing the realization of the pro- osal Of the State of New York (now embodied in a Bw to adapt the Erie aud Oswego canals of that State to the Lory | uses of the natioual govern- ment, To obtain thie object only ® small sum is necessary Compared with that required to overcome the natural obstacle of Niagara is. The desired result could attained in one-third the time and and a one-third of the cost necessary for the cont pieion of any praciical work tui coukl cariy the line of trade round the Falis. Nor would th@ adaptation of the New York cai to the uses pee. posed be only an experiment in expenditure of time and mouey. Impressed with these considerations and the fact wel Seater cr ileal eee sow ge ie of large meroiai’ channels and improve old ones from the Weat to the sul of sound pout such aid as for jodielons impro’ nt of Erie canal to maximum capacity for transportation, 80.8 it to carry itlously and at the lowest cost such freight as may be brought 1e sal Pl ‘a simple law in si the olicy exp! a Clin Morris and Full after the of al has been paid no tax, toll or Impose ahall be, the a of the ‘Sonsaiation by estaolishing free trade and free commerce between the States, In the presence of historical and commercial and financial considerations it may now be well asked if the time has not arrived whem the general government should adopt the policy ad~ vocated by Madison, Gallatin, Olinton, Morris Fulton, by extending its strong arm and taking “the vexed question” of the improvement of this natto! Sune A of jeeront Syamane to ite maximum capacit arena of narrow, con- fiicting, political and local interests and relieve the iene ie pcg and and dalayp which have always Soni improvements. national object and revenue this policy z erate MGanadians heen willing to accept the e Cana Mberal privileges extended to them in the iraternal Haan ver ps geonraphy. climate and the Doun alterably 1x phy, davies Sstabtianed under the Ashburton Treaty, of their products, and would have been permit retain Hele Len hienind me bent iy err gave them lacing them on @ commercial equality “with the States of this Union, without being subject to any of its burdens. pay CONCLUSIONS. hy: Neither the trade nor the public works of any other country should be regarded in an unfriendly It 1s ignoble to hold other nations back or obstruct the chariot wheels of in any part of the world. We should rat! ice by des veloping those natural advan in our own they promote our own ‘others. The expressions of Mr. Burlingame when, at the head of the Chinese Embasgy, he said, “‘We come here to seek the unin cation ofthe human family, and we trust that all ‘will meet us in like spirit in this republic,’ embody the policy we should everywhere endeavor to carry into effect. The official enunciation of this doctrine on behalf of the t Oriental empire was an event of scarcely less importance than the departure of Columbus on his none of discovery to this Conti+ nent. Certainly the were met in thig spirit when the treaty was tiated. If instead of this friendly policy tue Unit States had adopted. towards them the illiberal course urged by the Ca- nadian Minister upon his own country when he said “We must keep our own trade within and over ite own channels as much as possible,”’ we should never, have conceded to her free access to our markets for all she has to sell and left open for taxation nearly all we sell to her for her own use and consumption, or permitted the free return of ucts or freight this side baby tion payment of duty after hav! over Canadian . ae ‘The first formidable opposition, stimulated by popiiar sentiment, against the treaty arose irom the Hpractioe of tho principe of relproctty by the an ice of the ciple of rec: Canadians. Not only did’ the Canadian ister commit this error in his public utterances, but, as has been already stated, he endeavored to counteract the natural effects of the treaty by iaws discriminat- ing against us. Higher duties were placed upon our manuiactures, Laws were to prevent our merchants irom selling to Canadians merchandise. imported from other countries. and to force business to the Canadian railroads and canals, and pasintirs enactments were passed interfering with the course of trade and depriving our people of its just benefits. The grievance was by no means theoreti- cal. Under the tariffs and fe hyoenne ore by Canada the trade of our in! cities with her wy destroyed, manufacturera broke up their ty mer | ments removed to the Province, and the of our Atlantic cities with Canada in imported goods ‘was transferred to Montreal. The belief, ing in these reasons and held by Congress, that the spirit and substance of the Treaty of Washington had been disregarded by the I tors of Canada, led to its termination and the e to authorize any negotiations for its renewal. Nor have the Canadians, in the pro} subinitted. Re ee other ti ever 0} to e such additions the free list as wol fairly out a system of just exchange. A treaty; if thorot wp, gs would include all the prov ducts of on both sides, or, at lente Browse for @ fair and equal cx e of them. party sell~ ing the productions of agriculture and the forest should remove iaws preventing the sade of 1anufac- tures on the part of the other; and “under the sent condition of our revenue laws competi between the people of the United states and Canada can only be on equal terms when duties equal to those directly or indirectly exacted by our government from our own citizens are levied on importations the product of The same principle evidently applies to the com tition of the cheaply built and untaxed railroads of Canada with those of our own country, which, through the tariff and various methods of internal taxation, contribute largely to the revenue of the vu ee. : InWhe clear light of past experience our come mercial advantages would be jairly estimated in fixing the basis of reciprocal trade. Nor could the well known fact be overlooked that since the termi- nation of the Keciprocity age 2 foreign immigra- tion to Canada no longer stops there, but passes on to the United States. if the value of the foreign labor immigration is correctly estimated in his re- cent able report by the Commissioner of Internal Revenue (and who doubts it when our vast unde- veloped resources, with our opportuniiies for de- velopment are considered’), It has added $50,000,000 directly and $500,000,000 indirectly to the wealth and resources of this country since the termination of the war. The very large amount of revenue— now not less than seven millions of dollars— annually derived from Canadian productions, with: out diminishing thelr importation, deserves and must receive grave thought in any future negotm- tion between the United states and the New Do» minion. So, also, will the advanced condition many manufactures in Canada, originating in the unfair advantage taken of the jon accorded to her by the treaty. Instructed by the lessons of experience and a knowledge of our present financial requirements, @ treaty so much desired by Canada might no doubt be made, so comprehensive in ali its details that neither party could be mistaken as to its results or be capable of evading its spirit or substance; or oug future intercourse might be left where it now is, to reciprocal or independent legislation, to be chi from time to tine, as the varying interests of our mestic or taternational relations or the violation of roctprocal obligations may require. eqSRAEL T. HATCH. BOARD OF BALTH. Acceptance of Superintendent Dalton’s Ree signation=Startling Hevelation about Kee rosene Oil. ' A special meeting of the Metropolitan Board of Health was held yesterday afternoon, Mr. Linco presiding. The more immediate object of convening the Board in extraordinary session was to consider the question of accepting or rejecting the resigna- tion of Sanitary Superintendent Dalton and other omictals of the Board. The resignation of Mr. Dalton and Inspectors Paine and Maciay were accepted, after brief dwens+ — LA Lego J ond Dr. Rap nd Jones was ‘ietailed o perform the functions of Sanitary Superintendent uotil further orders. a ‘The committee appointed some weeks ago to in- yongnee ee ay te and be of edt disease: rt wi w rhished bye pon ges sili bt order was mae directing the immediate re- moval of the carcasses of the horses burie’ by the fire of Briggs Brothers’ stables, in Twenty-third street; the premises to be weil disinfected with chioride of ims and giving the carcasses to the New York Rendering Vompany. Professor Chandier submitted a report on petro- jeum. He explained that tue bengine and other ex- ploasive ae having least marketabie value were permitted to remata in burning oils through tue cupidity of the manufacturer. pe borning oil should 4 be free from benzine it Of Some eighty specimens he had purchased from the shops in thie city every One contumed @ large proportion of this dangerous element. He had bey some that gave off an inflammable vapor at 18 degrees (Fabrenieit), and took fire from ® match held an inch above ita surface. Others vaporiaed at 31 degrees (Falrenhelt), 40, 46, &c., and he was unable to fod any Kerosene on sale in this city that was safe to ase, Good Kerosene should not give off a vapor nelow 100 degrees (Fahrenheit) or take fire below 10, In the eyghty specimens he purchased not one reac tiie standard of safety; yet ail might be made safe at a trifling ihorease of dost, ‘the reading of this report caused considerale dis- cassion apon the best method of preventing the salo of this Cangerous production, \'rofessor Chandier informed the Board that he had also made elaborate investigations to ascertain the safest forms of lamps, a6 well as the dager at tonding the use of those How cominorily sold, and the Board requested hin wo give them the beuelt of jie Cxporlinents.